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May 12, 2021
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Virginia 529 excess distribution from basis

  • May 12, 2021
  • 1 reply
  • 24 views

Where do I record income from a distribution from my Virginia 529  in excess of qualified expenses for a scholarship received. The excess was less than the basis so no federal tax was due but since I originally got a state deduction I think I owe state tax but I don't know where to put it in Turbotax?

    Best answer by AmyC

    In the program, under Here's the income that VA handles differently:

    • scroll down to Education
    • select VA 529 Distribution or Refund

    However. if not taxable on federal, there should not be a VA effect. You said the excess was less than the basis.

     

    See 760 Instructions  page 28 item 34 is for distributions that are taxable on federal return. Page 25 (page 16 on the document) is for additions.

    1 reply

    AmyC
    AmyCAnswer
    Level 15
    May 12, 2021

    In the program, under Here's the income that VA handles differently:

    • scroll down to Education
    • select VA 529 Distribution or Refund

    However. if not taxable on federal, there should not be a VA effect. You said the excess was less than the basis.

     

    See 760 Instructions  page 28 item 34 is for distributions that are taxable on federal return. Page 25 (page 16 on the document) is for additions.

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